How to Choose the Best FP&A and Strategic Accounting Software for Your Small or Mid-Sized Business
Financial Planning & Analysis (FP&A) and Strategic Accounting are essential functions for businesses looking to manage costs and forecast the future. However, choosing the right software to support these functions can be overwhelming with many options. With small to mid-size businesses, the focus is often on cost-effectiveness, ease of use, and quick implementation, while still providing the essential features required.
Here is a consolidated guide with top tips and software recommendations for FP&A and Strategic Accounting, tailored for small to mid-sized businesses and small businesses specifically:
FP&A
Top Tips:
- User-friendly interface: FP&A software should be easy to use for everyone on your team, regardless of their technical expertise. Look for a system with a simple and intuitive interface.
- Data integration: Your FP&A system should be able to seamlessly integrate with your existing ERP, CRM, and other data sources. This will ensure a seamless data flow and reduce the need for manual data entry.
- Customizability: FP&A software should be customizable to meet your specific business needs. Look for a system that allows you to create custom reports, dashboards, and analytics.
- Real-time data: FP&A software should provide real-time data updates so that you can make accurate and timely decisions.
- Scalability: Your FP&A system should be able to scale with your business. Look for a system that can accommodate increasing data volumes and complexity.
- Compliance & security: FP&A software should offer robust security features to protect sensitive data and comply with relevant industry standards.
- Customer support: Excellent customer service and support for troubleshooting can be invaluable. Look for a vendor that offers a variety of support channels, such as phone, email, and live chat.
- Budget-friendly: Be mindful of both initial setup costs and ongoing fees. FP&A software can be expensive, but there are also affordable options available.
Software Recommendations:
- Adaptive Insights: A well-suited option for medium-sized businesses, Adaptive Insights offers excellent budgeting and forecasting capabilities.
- Anaplan: Anaplan is a good choice for businesses exploring multiple financial scenarios. It offers a variety of what-if scenario capabilities.
- Vena: Vena is a good option for companies that rely heavily on Excel, as it integrates easily.
Strategic Accounting
Top Tips:
- Ease of use: Strategic accounting software should be easy to use for your team. Look for a system with an intuitive interface, easy implementation, and does not require extensive training or customization.
- Scalability: Choose a software that can grow with your business.
- Affordability: Cost is often a significant factor for small businesses. There are a number of affordable options available, so make sure to compare prices and features before making a decision. Many systems offer a free trial.
- Quick implementation: Choose a system that can be implemented quickly.
- Data connectivity: Ensure the system can integrate well with other tools you might be using.
- Basic forecasting and reporting: Make sure it supports fundamentals like cash flow forecasting and profitability analysis.
- Automated reconciliation: Automate reconciliations to reduce errors and save time.
- Customer support: Ensure that adequate support is available, especially when in-house expertise is not available.
- Security: Data confidentiality and integrity are essential.
- Cloud-based or on-premise: Decide which better suits your business needs.
Software Recommendations:
- QuickBooks Online: Affordable and offers features beyond basic accounting.
- Xero: User-friendly and offers decent reporting capabilities.
- FreshBooks: Strong invoicing and expense tracking features.
- Zoho Books: Comprehensive accounting features.
- Wave: A free option suitable for very small businesses.
- Sage 50cloud: More advanced features like inventory management.
By considering these factors and software options, you can choose the best FP&A and Strategic Accounting software for your business size and specific needs.
Additional Software Considerations
- Microsoft Excel: Excel is powerful in the right hands, and has many of the tools available. Most finance and accounting personnel is extremely familiar with Excel, so there is no need for ease of use or implementation considerations. With the advancement of AI and Robotic Process Automation (RPA), smaller businesses can save on costs. However, this methodology will require more consultants or in-house expertise to set up correctly.
If you are considering software implementations to help with your accounting or financial modeling, talk to us today.
